Options Brief: Dow Chemical (DOW)

DOW – Dow Chemical Co. – Bullish options investors were quick to initiate optimistic transactions on Dow Chemical this morning with shares of the manufacturer of chemicals, plastic materials and agricultural products trading higher by 2.90% to stand at $26.18 by 10:40 am (ET). Early-bird investors sold short nearly 6,500 puts at the July $20 strike to take in an average premium of $0.195 per contract. Put sellers keep the full premium received on the sale as long as DOW’s share price exceeds $20.00 through expiration day next month. Dow Chemical’s shares have not traded near $20.00 since September 4, 2009.

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

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